• Ernie Diaz


Some acronyms have more brand equity than Coca-Cola, especially since the Woke-a-Cola scandal. GDP and IPO, in particular, denote abundance and prosperity. The more the better; who wants to be a Bhutan, or a Bechtel (/s)?

So the news that 88 Chinese tech companies are suspending their planned IPOs, further to rocky regulations and America's hard place to be Chinese, seems to most like a huge step back. Oh what could have been, had Jack Ma merely been allowed to set up a fintech empire more vast and powerful than China's central bank itself.

LehmanBush is a bit more pragmatic. "In its simplest terms, an IPO is a fund-raise," says Jimmie Jeremejev. "Had those companies listed this year, the public would have had a chance to invest earlier, for better or worse. But even without an IPO, these companies still want to raise funds. That means an opportunity for institutional investors to participate in ongoing private rounds, and enjoy upside in the run up to an eventual IPO. A shame for the retail investor, and a temporary setback for the STAR market. But from our perspective, a necessary step, and a fortunate one for institutionals."

11 views0 comments

Recent Posts

See All

Let's tick off all China's bad news, before getting to the good news. Good news, that is, for investors looking to diversify their global portfolios. Not so good for Gordon Chang and other patient app

Like Hollywood, the western press is invested in narratives and emotional manipulation. Unlike Hollywood, that press has no compunction about skipping the third act of a story, if it doesn't fit that

Politics makes shortchanged bedfellows. As we've written before and will no doubt write again, the paradigm that China stocks = the VIEs of giant tech companies that make it to New York is keeping ave